This paper studies the impact of friction and preferences on match formation in two-sided markets. Because every agent has private information about their preferences for potential matches’ characteristics, forming a match based on mutual compatibility requires extensive costly search. We use...

Customer markets are characterized by long-term relations between buyers and sellers. Long-term relations evolve if buyers trust sellers to provide high quality and if sellers are trustworthy. However, changes in the terms of this implicit contract may antagonize customers and disrupt the...

Customer markets are characterized by long-term relationships between buyers and sellers that evolve if buyers trust sellers to provide high quality and if sellers are trustworthy. However, changes in the terms of this implicit contract may antagonize customers and disrupt the relationship. We...

In the computing industry, computing systems typically consist of multiple components supplied by independent firms. An important feature of this industry is coopetition. In other words, firms must cooperate with each other in making a system work, but at the same time compete for dividing the...